The partners have the right to manage the project, and some have the right to waive their right in management and to limit their role to financial contribution. However, the partner loses his management efforts and is not liable for any financial loss. In case of loss, the parties distribute the loss according to each partyвЂ™s contribution in the capital only.The amount of profit remaining after deducting the partnerвЂ™s share is distributed according to the agreed percentage, or according to the contribution of each party in the capital.An agreed share for the partner in return for project management and administration works, according to a separate contract.According to the contract, profit is distributed as below: It is a method of direct financing in which the Bank and the client jointly provide the capital required for financing a particular project, and the Bank and the client share the profits according to the agreed percentage, or in an a percentage of each partyвЂ™s contribution in the capital. Offers a solution for financing labor expenses, which is part of the cost of the produced item, unlike financing through Murabaha.Offers a solution for companies and business men to finance their manufacturing and production needs.Offers solutions for individuals to build and prepare houses and apartments.IstisnaвЂ™a is applied by considering the Bank as the manufacturer and the client as the requester of the asset that needs to be manufactured for a named price, and then the Bank shall enter into contract with a specialized manufacturer/contractor to produce the item in the agreed form, without making any connections between the two contacts (which is known as parallel IstisnaвЂ™a). It is a binding contract for both parties, taking into consideration that it meets the specified requirements, such as defining the item, its type, quantities, and description, in addition to specifying the price and the terms of payment. IstisnaвЂ™a is a contract of exchange with deferred delivery, applied to specified made-to-order items. It is a method of direct financing through which the Bank produces a specific item or constructs a building based on the request of the client. Long term payment terms which are suitable for individualsвЂ™ income and companiesвЂ™ cash flow.Offers a solution for companies and business men to own instruments and machinery necessary for their operations.Offers solutions for individuals to own houses and apartments for relatively good prices.Any additional amounts will be returned to the client. In case the client fails to fulfill his payments, the contract will be terminated, and the paid amounts are considered lease fees. During the leasing period, the client pays the lease amount on a specified number of installments, which are paid on specific dates. The ownership of asset is transferred to the client at the end of the contract term in return for a symbolic payment according to a sales or gift contract. The Bank might not be the owner of the asset, in this case, the Bank will purchase this asset based on the request of the client, who will rent it for the specified period, and the client will be responsible for normal maintenance expenses (operational expenses), and the expensing necessary for the use of the item is endured by the Lessor. It is a method of direct financing through which an asset owned by the Bank is leased to a client who can benefit from the asset in return for a known leasing fee paid on a number of payment. Meets the purchasing needs of all clients for local and imported goods.Ease of implementation and application.Therefore, the Murabaha Sales Contract consists of four elements. Thus, the Bank buys this item and it becomes its property, and then the item is sold to the client in return for the first price and adding a known profit amount. A method of direct financing through which the clients asks the Bank to purchase a good or an item, and the client pledges to purchase it from the Bank in case the Bank purchases it.

Islamic finance and banking